Forex - GBP/USD hits fresh daily low after upbeat U.S. housing data

Published 10/27/2010, 11:41 AM
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Investing.com – The pound extended earlier losses against the U.S. dollar on Wednesday, falling to hit a fresh daily low after official data showed that U.S. new home sales rose more-than-expected in September.

GBP/USD hit 1.5757 during late European trade, a fresh daily low; the pair subsequently consolidated at 1.5794, shedding 0.31%.

Cable was likely to find support at 1.5650, the low of October 22 and resistance at 1.6002, the high of October 18.

Earlier in the day, the Census Bureau said new home sales rose to a seasonally adjusted 307,000 units in September, after rising to 288,000 units in August. Analysts had expected the number of new home sales to rise to 300,000 units in September.

The report said that year-on-year, existing home sales rose by a seasonally adjusted 6.6% in September, up from 1.1% in August.

Meanwhile, separate data showed that U.S. core durable goods orders fell unexpectedly in September while durable goods orders rose more-than-expected.

Meanwhile, the pound was up against the euro, with EUR/GBP shedding 0.12% to hit 0.8734.

The dollar was also boosted following a report in the Wall Street Journal said that the Federal Reserve was likely to unveil a program of U.S. Treasury bond purchases worth a few hundred billion dollars over several months, contrary to market expectations of purchases in excess of USD 1 trillion.

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